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Analyst Comment

Tokmanni's expansion in Denmark continues

By Arttu HeikuraAnalyst
Tokmanni Group

Translation: Original comment published in Finnish on 07/11/2024 at 7:38 am EEST

Tokmanni announced new store openings in Denmark during 2024-25. Considering the objectives stated in connection with the strategy update the announced store openings were expected, and thus do not cause any forecast changes.

Denmark is an attractive market

Tokmanni announced its plans to open 8 new stores under the Big Dollar concept across Denmark in the coming years. Two are scheduled for the current financial year (November) and the remaining six will, according to preliminary estimates, be opened in 2025 (3 in Q2 and 3 in Q4). With the new openings, the Big Dollar network grows to 13 stores, where we still see plenty of room for growth.

As a whole, we are neutral about the news, but a strong expansion in Denmark may indicate that the market has continued to welcome Tokmanni. Denmark is an interesting market for Tokmanni, as Big Dollar operates with a different concept than other focused discount store concepts, offering an experience and a wide range of products, which could open up significant growth potential.

Tokmanni Group

13.22EUR10.07.2024, 18.00
15EURTarget price
Accumulate
Recommendation updated:13.06.2024

Tokmanni Group is a variety discount retailer in the Nordics. The group has stores in Finland, Sweden and Denmark under the brand names Tokmanni, Dollarstore, Big Dollar, Click Shoes and Miny. In addition, Tokmanni has online stores. Tokmanni's headquarter and logistics centres are located in Mäntsälä, Finland. Dollarstore is headquartered in Kista, Stockholm with a central warehouse in Örebro. The group own a procurement company located in Shanghai together with a Norwegian discount store chain Europris.

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Key Estimate Figures13.06.2024

202324e25e
Revenue1,392.71,673.31,794.7
growth-%19.2 %20.2 %7.3 %
EBIT (adj.)100.2112.9134.2
EBIT-% (adj.)7.2 %6.7 %7.5 %
EPS (adj.)1.041.011.32
Dividend0.760.770.82
Dividend %4.9 %8.9 %9.6 %
P/E (adj.)14.88.56.5
EV/EBITDA8.65.34.7
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